Blockchain in the real estate sector
Terms such as Bitcoin, cryptocurrencies and Blockchain are increasingly used in the economic sector. The internet, among other things, has changed the way we perform our economic transactions. The barriers are increasingly blurred due to the appearance of new agents in the technological world. One of these agents is blockchain.
The blockchain technology is a database on the cloud that is distributed in a decentralised manner, i.e., there is a copy of this database on thousands of servers (known as miners) that are not connected to each other and that are in charge of validating and verifying the transactions.
This disruptive technology is also very attractive for the real estate sector. Here we present some of the benefits that blockchain offers the real estate sector.
The benefits of blockchain in the real estate sector
Transactions in real time
Blockchain allows almost real-time settlement of registered transactions and significantly reduces the risk of fraud, although it also limits the ability to cancel transactions.
Decrease in intermediaries
Given that it is a "peer to peer" network, this technology records a public transaction history in which it is possible to check any transaction that has been made. The blockchain technology is based on cryptographic tests, therefore it allows the two parties to make transactions without the need of a third party.
Reduces fraud, abuse and manipulation in transactions
This model encourages the parties involved to continue validating the blocks or transactions, and each validation is recorded in a verifiable history. This reduces fraud and the possibility that influential people can modify the records for their own benefit.